A Glimpse of SolarEdge Technologies's Earnings Potential
SolarEdge Technologies (NASDAQ:SEDG) is preparing to release its quarterly earnings on Wednesday, 2025-11-05. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect SolarEdge Technologies to report an earnings per share (EPS) of $-0.55.
Anticipation surrounds SolarEdge Technologies's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
Last quarter the company beat EPS by $0.17, which was followed by a 2.13% increase in the share price the next day.
Here's a look at SolarEdge Technologies's past performance and the resulting price change:
| Quarter | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|
| EPS Estimate | -0.98 | -1.16 | -1.66 | -1.63 |
| EPS Actual | -0.81 | -1.14 | -3.52 | -15.33 |
| Price Change % | 2.00 | 3.00 | -7.00 | 1.00 |
Performance of SolarEdge Technologies Shares
Shares of SolarEdge Technologies were trading at $32.87 as of November 03. Over the last 52-week period, shares are up 115.0%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Views on SolarEdge Technologies
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SolarEdge Technologies.
Analysts have given SolarEdge Technologies a total of 10 ratings, with the consensus rating being Neutral. The average one-year price target is $27.9, indicating a potential 15.12% downside.
Analyzing Ratings Among Peers
The analysis below examines the analyst ratings and average 1-year price targets of Veeco Instruments and Kulicke & Soffa Indus, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for Veeco Instruments, with an average 1-year price target of $29.0, suggesting a potential 11.77% downside.
- Analysts currently favor an Buy trajectory for Kulicke & Soffa Indus, with an average 1-year price target of $37.5, suggesting a potential 14.09% upside.
Analysis Summary for Peers
The peer analysis summary presents essential metrics for Veeco Instruments and Kulicke & Soffa Indus, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| SolarEdge Technologies | Neutral | 9.05% | $32.13M | -22.53% |
| Veeco Instruments | Buy | -5.56% | $68.73M | 1.42% |
| Kulicke & Soffa Indus | Buy | -18.30% | $69.24M | -0.39% |
Key Takeaway:
SolarEdge Technologies ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. For Return on Equity, it is at the bottom compared to its peers.
Unveiling the Story Behind SolarEdge Technologies
SolarEdge Technologies designs, develops, and sells direct current optimized inverter systems for solar photovoltaic installations. The company system consists of power optimizers, inverters, and cloud-based monitoring platform and addresses a broad range of solar market segments, from residential solar installations to commercial and small utility-scale solar installations. The company sells its products directly to solar installers, engineering, procurement, and construction firms and indirectly to solar installers through distributors and electrical equipment wholesalers.
Key Indicators: SolarEdge Technologies's Financial Health
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: SolarEdge Technologies's revenue growth over a period of 3 months has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 9.05%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -43.1%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): SolarEdge Technologies's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -22.53%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): SolarEdge Technologies's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -4.97%, the company may face hurdles in achieving optimal financial returns.
Debt Management: SolarEdge Technologies's debt-to-equity ratio stands notably higher than the industry average, reaching 1.48. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for SolarEdge Technologies visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.